Dow Jones gained 330.06 points, up nearly 3% from its previous close. The main source of optimism was the statement by German Chancellor Angela Merkel and French President Nicolas Sarkozy, they would agree on a solution to the Eurozone debt crisis. The promise to deliver a plan at the Nov.3 G20 meeting likewise buoyed the Euro (+2%), STOXX (+2.27%), FTSE (+1.8%), CAC (+2.13%) and DAX (+3.02%).
Looks like this stock rally ain’t over yet. There are 2 higher PSEi closes up ahead: Sept.22’s 4,096.10 and Sept.21’s 4,204.29. If I had to hazard a guess, PSEi gaps up today and ends up higher probably 60 to 80 points (1.5%-2%).
Oil prices are up big today, so you may want to fill up your tanks full before the next round of price hikes. Everyone’s bullish now and sentiment is very positive at the moment. But just to provide a balanced view, Germany and France just talked up the market. Promises have been thrown around since last year, and the hard decisions kicked down the road endlessly. The European debt crisis isn’t over yet. The Dexia bailout may be a sign of more things to come.
In the meantime, enjoy the rally, Traders!